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Law Reform Program Studi Magister Ilmu Hukum

Volume 15, Nomor 1, Tahun 2019 Fakultas Hukum Universitas Diponegoro

THE URGENCY OF GEOGRAPHICAL INDICATION AS A LEGAL PROTECTION


INSTRUMENT TOWARD TRADITIONALKNOWLEDGE IN INDONESIA

Pulung Widhi Hari Hananto*, Rahandy Rizki Prananda


Fakultas Hukum, Universitas Diponegoro
princedipojaya@gmail.com

ABSTRACT

Traditional knowledge products characterized by geographical conditions are economically and spiritually
valuable assets for the people of the area. Potential misleading of geographical indication goods requires a
legal instrument that provides protection. Geographical Indication (GI) is one of the instruments of intellectual
wealth that has its own characteristics. This study aims to examine the regulations of GeograpicaI Indication in
the national and international levels, the implications of geographical indications for stakeholders and the ideal
form of setting geographical indications in Indonesia. This study uses normative juridical methods and
comparative studies. The results of the study show that the GI’s regulation applied in Indonesia adheres to a
system of merging with brand regulation. The implications of GI’s registration bring a comprehensive impact on
the economy and the legitimacy of traditional knowledge. After reviewing the comparison of the protection of
geographical indications in Ethiopia and Jamaica, the authors recommend to separate the arrangements for
geographical indications with brands (sui generis)

Keywords: Traditional Knowledge; Geographical Indication; Protection.

ABSTRAK

Produk pengetahuan tradisional yang bercirikan kondisi geografis merupakan aset yang bernilai ekonomis dan
spiritual bagi masyarakat daerah tersebut. Potensi penyalah gunaan terhadap barang indikasi geografis
memerlukan suatu perangkat hukum yang bersifat memberikan perlindungan. Indikasi Geografis (IG)
merupakan salah satu instrument kekayan intelektual yang mempunyai ciri khas tersendiri. Penelitian ini
bertujuan untuk mengkaji pengaturan Indikasi geografis di tingkat nasional dan internasional dan implikasi
Indikasi geografis terhadap para stakeholder dan bentuk ideal pengaturan IG di Indonesia. Penelitian ini
menggunakan metode yuridis normative dan studi komparatif. Hasil penelitian menunjukan bahwa pengaturan
IG yang diterapkan di Indonesia menganut system penggabungan dengan pengaturan merek. Implikasi
pendaftaran IG membawa dampak komprehensif pada bidang ekonomi dan alat legitimasi terhadap
pengetahuan tradisional. Berdasarkan perbandingan perlindungan Indikasi geografis di Ethiopia dan Jamaika,
direkomendasikan untuk memisahkan pengaturan Indikasi geografis dengan merek (sui generis)
Kata Kunci: Pengetahuan Tradisional; Indikasi Geographis; Perlindungan.

*
Corresponding Author

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Law Reform Program Studi Magister Ilmu Hukum
Volume 15, Nomor 1, Tahun 2019 Fakultas Hukum Universitas Diponegoro

A. INTRODUCTION scope.
The complexity of legal protection issues The definition of intellectual property rights is
against intellectual property rights in the era of generally described as a right to wealth that arises
globalization is followed by varied discourses. The or is born because of the results of human
birth of these problems is indirectly the result of the intellectual abilities and creativity. Intellectual
development of science, technology and human property rights are categorized as rights to wealth
resources manifested in an innovation for the considering that intellectual property rights
welfare of society. Taking into account the ultimately produce intellectual works in the form of:
situation, the community is required to be critical knowledge, art, literature, technology and to make it
and continue to test the determination of a product happen requires a sacrifice of energy, time, cost
in order to produce intellectual work that dominates and mind. The existence of sacrifice is marked as a
the market share of the economy. It becomes a value because it is felt that the existence of sacrifice
trigger for every human being to try to use his has produced an intellectual work. If this is
creative power to the fullest by being supported by correlated with the economic benefits enjoyed, then
cultural support in competing as a superior the inherent economic value fosters the conception
resource in a particular field. of property (property) of intellectual works earlier
The initial motivation is to get individualistic (Escudero, 2012). David Bainbridge interpret the
economic benefits, the reality is not a little cause Intellectual Property Rights as: "that area of law
for social friction and mutual disrespect for one which is related to the creative rights or commercial
another. Contradictions that have occurred have reputation and good will". The conception laid out
triggered a very significant violation of the basic by David emphasizes more on legal protection and
principles of intellectual property rights on legal certainty for its protection. This is logical
intellectual works that have been created. The because examining the problem of Intellectual
continuity of creativity competition in producing Property Rights in the end this community will lead
intellectual work that occurs without the existence to the legal concept of the values of an intellectual
of accommodating legal principles that are definite, work (Riswandi, & Syamsudin, 2004).
independent and transcendent, indirectly causing The relationship of a product, region and
polemic in the field of Intellectual Property Rights society describes an identity of images and
and transforming into a serious threat to intellectual symbols in a culture. The results of intellectual
products. Such conditions require the urgency of creativity created in a product, region and local
regulation, protection and respect for intellectual community have been culturally and historically
property rights in all infrastructures in all existing bound within a certain geographical boundary. This

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seems to signal that the identity of a society can be process that has been carried out for generations.
based on all forms and products of cultural In addition to the results of natural resources,
activities that are sustainably and sustainably geographical indication products also include
maintained in the social order system. Even in handicrafts and industrial products that are
historical texts and cultural anthropology, a characteristic of certain regions.
description of local products can be formulated as In the changing dynamics of the global
an identity that can project the cultural ethos of economy, IG emerged as an important intellectual
local indigenous people (Rustiala, & Munzer, property tool (Mawardi, 2009). IG is contextually
2007). The differentiation of a product becomes an categorized as part of the creation of the community
important instrument in describing the definition in a particular area while maintaining its distinctive
and recognition in juridical, economic and cultural character. Noting in the context of the meaning of
aspects. Description of local products in an area geographical indications, geographic indications
serves to illuminate the identity of local residents. can be used as a functioning device to provide
Product differentiation is an important means of protection against traditional knowledge. But in
attracting consumer interest in a market reality, this is difficult to run smoothly and
atmosphere surrounded by intense business experience a number of obstacles. Developing
competition. countries do not have strong bargaining power at
The existence of geographical indications the level of international relations and lack of
(which are then abbreviated as IG) in the modern knowledge and awareness of the protection of
era, not only symbolizes the characteristic of a intellectual property rights. This weakness led to the
particular region. But also emphasizes the difficult position of developing countries in declaring
traditional capabilities and processing techniques of and registering their products as geographical
a product that is characteristic of the region in indications.
question. As with brands, geographical indications Traditional knowledge has become a new legal
have an important role in presenting a complete problem due to the absence of international and
source of information and images of product domestic legal instruments that can optimally
guarantees to consumers about the quality and provide traditional knowledge that is increasingly
certain characteristics inherent in the product, which used by irresponsible parties. Modern IPR systems
is a selling point in competition in the relevant that have developed globally and uniformly have
market share. The quality of agricultural products made it easier and enhanced the process of
and high-quality food ingredients is the result of economic exploitation and erosion of indigenous
local culture originating from a traditional production cultures. This situation can be seen in the

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movement of hegemony and monopoly of that is very popular in Indonesia is Kintamani


multinational companies in the economic arena coffee. Kintamani coffee has characteristics derived
towards Genetic Resources and Traditional from the region's natural factors, where these
Knowledge aspects provide special characteristics and
The conditions described above are also qualities that distinguish it from other types of
experienced by Indonesia as a developing country coffee so that this type of coffee is included in the
that has a large natural resource wealth with its requirements as a product of Geographical
unique characteristics in each region. In addition, Indications. The concept of planting and cultivating
the geographical indication products also made a kontamani coffee by local farmers is based on the
symbol of identity from the symbolic Indonesian synergy of knowledge and cultural values of the
people. The product has also incised a reputation local community. The international community
for cultural character of the local traditional gives the embed name for Kintamani coffee, which
community in creativity, taste and intention. Some is orange flavored coffee. The special designation
examples of product geographical indication is caused by the combination of orange and coffee
potential in Indonesia include Toraja Coffee from flavors obtained not from an engineering stage.
South Sulawesi, Munthok White Pepper from The taste of oranges in kintamani coffee is purely
Bangla Island, Deli Tobacco from North Sumatra, natural. Utilization of planting areas by farmers in
Javanese Kapuk from East Java, BaliKintamani Belantih which planted Arabica coffee seeds
Coffeefrom Bali. These products are created based adjacent to the Kintamani citrus plantation which
on human creativity based on cultural factors and became the mainstay of Bangli Regency's
local natural factors. Potential geographical agricultural products. If it is considered as a genetic
indication products, it have a very significant value engineering product in plants, then the element of
on the Indonesian economy in general and the local accident done by farmers indirectly affects the taste
community in particular. According to Data from the of kintamani coffee.
Directorate General of Intellectual Property Rights The level of popularity and seeding of
of the Republic of Indonesia, there has been an Kintamani Arabica Coffee with traditional elements
increase in the number of registrations of has echoed up to the international level. This is
Geographical Indications in the period 2008 to 2016 evidenced by the many requests for exports to
which stated that therewerea total of 46 IGs European countries, especially France. Dr.
registered (List Of Registered Geographical Massilimiano Fabian, Chair of the SCAB (Specially
Indication). Coffee Association in Europe) and Dr. Vecenzo
One of the geographical indication products Sandalj, President of Associazione Caffe Trieste

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Italia, even said that the copo product is very likely polemic of Intellectual Property Rights by trending
to increase its market share in the European region. on geographical indications. The fame of the
Based on the research he said, the taste of coffee geographical indication products owned by a
produced from fermentation for 12 hours has a number of local communities in Indonesia requires
better taste and is suitable for European tastes, legal protection that serves as a protective tool for
while the taste of coffee from coffee fermented for commodity products from traditional knowledge
36 hours is more suitable for the tastes of from business competition that is fraudulent and
Americans, Japanese and Australians accommodates the socio-economic interests of
(Hananto,2014). The superiority of Kintamani's local communities to encourage and increase
coffee product differentiation that comes from competitiveness of Indonesian products
traditional knowledge that promotes culture and the international trade. Some of researchs which
secret technique of planting coffee bean cultivation related to the urgency of geographical indications
development has made it a distinctive Indonesian has been done by several legal researchers before.
product. This confirms that Indonesia is the only However, the scientific articles have a focus on the
Kintamani coffee producing country. But on the one subject matter of the study that is described in this
hand, in order to obtain better protection journal.
guarantees and provide commensurate income to The first study relates to the urgency of
producers, it is necessary to have a regulation and Geographical Indications on consumer protection in
policy model for protecting kintamani coffee as a legitimate journals. In this study, the geographical
result of the wealth of traditional knowledge, in indication function is intended to fulfill consumer
order to prevent a split, when the product is rights, namely the right to comfort, security and
distributed and promoted in trade, where there will safety in using goods and services. Specific
be a transfer of rights potentially carried out by information about an object is considered to be the
interested persons, but do not have the right to key to guaranteeing consumer protection (Zakiyah,
market the product on the basis of profit. 2018). The second study was published in the legal
Given the vast potential of legal implications dynamics journal. The article is entitled Legal
for the indication of geography, it is necessary to Protection of the Potential of Geographical
regulate the recognition and appreciation of the Indications in Brebes Regency in order to develop
results of one's creativity with a legal order called the Local Economic Community. This article tends
the intellectual property rights (IPR) or the to emphasize the registration of potential
Intellectual Property Right regime (Roisah, 2013). geographical indication products in the Brebes
This phenomenon can be interpreted as a Regency region and their benefits to the economy

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of the local community (Asyifah, 2015). Indonesia, given that most of the economic benefits
The third study was published in an of international trade regarding indigenous
international journal article entitled How Does (traditional) inheritance are less enjoyed by
Australia Regulate The Use of Geographical indigenous people. Based on the background of the
Indications For Products Other Wines And Spirits. legal issues outlined above, the authors would like
The focus of the issues discussed only explains GI to elaborate further into some formulation of the
regulation in Australia which also accommodates problems that will be studied in this article, namely:
trade products other than wine and spirits. First, What is the formulation of legal arrangements
However, it does not explain further the benefits of for traditional knowledge based on Geographical
GI as a legal instrument that provides and does not Indications on national and international
specify the legal gap (Ayu, 2006). Other several regulations. Secondly, what are the effectiveness
previous studies discussed the how geographical of geographical indication arrangements in
indications (GIs) cannot deliver the protection for Indonesia and it implications for traditional
traditional knowledge that indigenous peoples seek knowledge. Thirdly, what is the legal protection
(Frankel, 2011). Geographical Indication is an model of traditional knowledge based on
effective tool in protecting and rewarding not only Geographical Indications that is ideal for application
the market potential of elite items but also the in Indonesia.
traditional knowledge associated with them
(Kishore, 2018).. The potential impact of B. RESEARCH METHODS
Geographical Indication protection to local economy The Types of Legal Research which used by
(Sudjana, 2018). The legal protection for traditional the authors of this article is Doctrinal Legal
knowledge could be realized by accommodating the Research. The method of approach to the problem
traditional knowledge into the intellectual rights as a used is normative juridical and Comparative study
geographical indication and international with descriptive qualitative research specifications,
recognition for the indigenous community namely by analyzing and explaining qualitative data
communal ownership of the traditional knowledge. and then arranged in deductive thinking. The type
(Purwaningsih, 2014). The efforts to develop sui of data used is Secondary Data which includes
generis regulations for Indonesia traditional primary legal material (legislation related to
knowledge through sui generis system. (Rohani, Geographical Indications), Secondary legal
2015) materials (books, literature, journals, papers,
Traditional protection has become a very proceedings related to the issue of Geographical
urgent issue for international communities, including Indications) and Tertiary Legal Materials (Legal

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Dictionary and English dictionary). The method of of the goods and / or products produced. The types
data collection applied by the authors is Literature of products that can be cultivated by local residents
Study. to be registered as a result of geographical
indications include natural resources, handicrafts
C. RESULT AND DISCUSSION and industrial products.
The qualification of the specifications of a
1. Legal Protection Toward Traditional
product or traditional knowledge can qualify as a
Knowledge Based on Geographic Indication
geographical indication product if it fulfills a number
a. National Legal Instrument on Protecting
of elements, namely: First, there is a sign taken
Traditional Knowledge Through Geographic
from the name of the area which is a characteristic
Indication
of a commercialized product. Second, a sign that
1) The Law No.20 of 2016 Concerning
shows the quality of the goods traded. Third, the
Trademark and Geographic Indication
quality of the product in question is strongly
Regulation on geographical indications in
influenced by the natural environment, the social
Indonesia's nationa llegal system explicitly and in
culture of the surrounding community and the
detail in the Act. No.20 of 2016 concerning
technology used in the area concerned.
Trademarks and Geographical Indications. The
The existence of superior products in an area has
scope of the regulation of Geographical Indications
an important meaning for the economic welfare of
in this legislation includes several things, among
the surrounding community. Unique characteristics
others: the period of protection, the supervision and
that are only owned by the product or item and not
guidance mechanism and the substance testing of
found in other places, although it is possible to
a product to be categorized as a result of
come from the same composition of raw materials.
geographical indications. This regulation is a
Limited area coverage and strong market demand,
further battle of the previous Law, namely Law.
have the potential to provide maximum benefits for
No.15 of 2001 concerning Trademarks.
residents of the regions producing these distinctive
According to the provisions of Article 1 point
products.
6 of the Law No.20 of 2016 concerning Trademarks
The prescriptive approach toward GI
and Geographical Indication, Geographical
protection is based on the registration legal
Indication is a sign that shows the origin of an item
process, which is a pre-condition for obtaining
and / or product which due to geographical
protection it benefits and concerning the recognition
environment factors including natural factors,
of the product (Belleti, 2011). Preservation of
human factors or a combination of these two factors
elements of uniqueness and special characteristics
gives reputation, quality, and certain characteristics

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that only exist in the location producing the product geographical indication product collectively.
requires a strong legal instrument as a basis for Collective ownership shows differences in
providing protection and accommodating the geographical indications with other types of
distribution of economic benefits to the surrounding intellectual property rights that can be owned
community. Noting this, the existence of individually. So that all people who are in the area
geographical indications as one component of of the geographical indication goods can use the
Intellectual Property Rights (IPR) plays an important Geographical Indication mark, if the goods
role in protecting a superior product. How to protect produced are in accordance with the criteria
geographical indications, as stipulated in Article 53 required by the Trademark Law and Geographical
of Law No. 20 of 2016 can be done by registration. Indications.
The application for registration is carried out by the The next phase is the announcement.
Minister, meaning that the party submitting the Information on the announcement of the results of
application for registration is the representative of inspection of goods registered aims to prevent the
the surrounding community who can take the form unilateral application of registration or
of an institution appointed by the entire community acknowledgment of ownership of a geographical
in the geographical indication area to represent the indication product that has been stated to be
registration. accepted by another party, as well as a legal sign of
The community representatives can be in the community ownership in the relevant geographical
form of producer association groups, cooperatives, indication product area. Measure an object or
local community geographical indication protection product that has the potential to pass the selection
communities and the relevant Regional as one of the geographical indications, according to
Government. Requests for registration of the Indonesian Geographical Indication Book
Geographical Indication products are submitted to determined by the Directorate General of
the Directorate General of Intellectual Property Intellectual Property Rights,including: (1) Product
Rights of the Republic of Indonesia. Provisions on quality is maintained with good consistency; (2)
the procedure for registration of administrative Strong marketing system; (3) Able to provide
geographical indication applications are regulated in market needs in sufficient quantities on an ongoing
Government Ordinance No. 51 of 2007 concerning basis; (4) Effective and efficient management
Geographical Indications. Judging from the aspect system; and (Commitment to comply with the
of object ownership, one geographical indication provisions of regulations concerning Geography
product cannot be owned by one person, but must Indications.
be owned by all the people producing the By paying attention to the process of

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submitting an application for an indication of the reason for the application for registration of
geography above, it can be stated that the geographical indications cannot be registered if: (1)
protection of indications of geography in Indonesia Contrary to state ideology, legislation, morality,
adheres to a constitutive system with the principle religion, morality and public order; (2) Misleading or
of first to file. The First to file principle means that deceiving society regarding reputation, quality,
legal protection will be given to the parties who first characteristics, source origin, process of making
succeeded in registering geographical indications. goods, and / or their uses; and (3) It is a name that
The advantages of constitutive systems for has been used as a variety of plants that are used
protecting the rights of owners of geographical as similar plant varieties, unless there are additional
indications include: First, aspects of legal certainty equivalent words that indicate the same type of
related to ownership of Intellectual Property Rights. Geographical Indication.
In this case, if there is a dispute about ownership Refusal of a geographical indication
claims of geographic indications as part of the IPR, registration application can also be rejected by the
then it can be known that the party with the most Directorate General of Intellectual Property Rights
important rights is protected by law. Second, legal of the Republic of Indonesia with a number of
certainty in proof. Registration is the main strong considerations consisting of:
evidence. Documentation of geographical indication cannot
Although the constitutive system confirms the be verified and the product has an overall similarity
position of the owner of the geographical indication with the geographical indication product that has
who first registered into a strong position, on the been previously registered. After the geographical
other hand, this system has the disadvantage of indication product has passed and is officially
only registered geographical indication products registered by the Directorate General of Intellectual
that are entitled to legal protection. The logical Property Rights office, then automatically the
consequence that can arise for the lack of a geographical indication product will get legal
constitutive system is that there is an opportunity for protection from the state. The period of legal
other parties to take personal advantage and protection against geographical indications is not
benefit economically from geographical indication limited as long as the GI rights holders are able to
products by registering them as trademarks. Not all maintain, image, quality and characteristics which
results of traditional knowledge can be a product of are the basis for the geographical indication given
geographical indications. According to the to objects that are registered continuously.
provisions of Article 56 paragraph (1) of the Law of
Trademarks and Geographical Indications, the
2) Government Ordinance No.51 of 2007

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In order to apply Geographical Indication as be provided after registration. The existence of


a mechanism of protection against traditional geographical indications aims to ensure legal
knowledge, the Government of the Republic of certainty for the protection of wealth and traditional
Indonesia issued Government Ordinance No.51 of knowledge. the protection period for geographical
2007 which regulates technical matters related to indications can last as long as the characteristics
registration procedures for GI products that exist in and / or quality used as the basis for their
certain areas in the territory of Indonesia along with registration still exist. The characteristics and
other aspects from geographical indications. In the determination of benchmarks in setting basic
regulation of Law 15 of 2001 (the old Trademark standards in the registration of geographical
Law), the limitation of the meaning of the sign only indications is explained as rules of operational
covers the name of the place or region, but does standards, which include information about
not indicate the place of origin of the goods geographical location, natural and human factors
protected by Geographical Indications. The that affect good quality or characteristics. In
intended items can be agricultural products, food operational standards also attach information
ingredients, handicrafts or other items in regarding maps of regions / regions, history and
accordance with the provisions. tradition, processing, good quality testing methods,
Government Ordinance Number 51 of 2007 and network of facilities used. Standard operational
concerning Geographical Indications can be rules are prepared by local community groups
considered as the resolution of conflicts especially where goods are produced.
in the field of trade that occur in the community. As The owner of a Geographical product
the implementing regulation of the Trademark Law indication and a group of people in the area where
Number 15 of 2001, especially Article 56 the goods are produced. Both have the competence
concerning Geographical Indications, Government to preserve, maintain and use geographical
Ordinance Number 51 of 2007 is issued which is indications in connection with daily economic
expected to be used as an guideline for needs. Meanwhile, producers who are able to
implementing registration of Geographical produce Geographical Indications goods, which are
Indications. Several articles have been ratified to in accordance with the criteria set out in the
regulate the systematic registration of Geographical Geographical Indication guidebook and comply with
Indications in Indonesia so that there is an orderly all provisions in it, have the right to use
direction of the economic system in Indonesia. geographical indication products, after they register
Based on Government Regulation No. 51 of themselves as users of geographical indications on
2007, legal protection of geographical models can Office of the Directorate of Intellectual Property

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Rights. The results of foreign IG products can also heritage and traditional knowledge of local
be registered in Indonesia. In order to pass the communities.
substance test and be accepted in the registration
process, the conditions that must be fulfilled by the b. International Legal Instrument On Protecting
foreign IG product are that the item must have been Traditional Knowledge Through Geographic
recognized and registered officially in the provisions Indication
of the country of origin regulations. Registration of 1) Paris Convention 1883 For Protection
IG products in Indonesia is carried out by the IndustrialProperty
Directorate General of Intellectual Property Rights. The existence of the Paris Convention as a
This institution is supported by the Geographical legal instrument of the first multilateral treaty in
Expert Team. The seven members from the accommodating the protection of intellectual
Ministry of Agriculture, the Ministry of Law and property rights, especially indications of sources or
Human Rights, the Ministry of Industry and the assessments of origin in member countries, based
Ministry of Industry and the Ministry of Maritime on legal regulations and customary practices of
Affairs and Fisheries. each country. The Paris Convention stipulates that
Indonesia is an archipelagic country that is "indication of source or judgment of origin" is a legal
rich in knowledge, traditions and culture and a subject that can be protected. However, the legal
tropical climate that produces various types of good protection offered is limited to guaranteeing certain
products with diverse cultures. Where in each protective measures in a specific or broad scope,
region there are many inheritances has the but only for IG use that is wrong or misleading, not
potential to produce products in the form of goods general IG use. In addition, the Paris Convention
derived from the knowledge of the surrounding does not define "indications of sources or
community. Sociological excellence is a high value statements of origin" or introduce international
inheritance that comes from a traditional heritage standards for their protection.
that has been handed down in Indonesian society, Article 10 The Paris Convention prohibits
especially food and handicrafts. The dominance of misuse of indications of regions when accompanied
traditional-based products also shows knowledge in by trade names that are wrong, fictitious, or
the present. The issuance of Law No. 20 of 2016 deceptive. This provision also mandates the seizure
(Trademark and GI Law) and Government of goods identified with false indications of origin
Ordinance of the Republic of Indonesia No.51 of when: "When every producer or trader ... is involved
2007 is a manifestation of the Indonesian in the production or manufacture or sale of these
Government's concern in protecting cultural goods." This prohibition was reinstated in 1958,

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when article 10 was internalized into the Paris Agreement granted was stronger than the
Convention. According to the article, the indication Protection of Paris 1883, provided only States
categories that "can mislead the public regarding helped provide ratification of this agreement.
the nature, manufacturing process, characteristics,
suitability for their purpose, or quantity," must be 3) Lisbon Agreement 1958 for the protection of
prohibited as an act of unfair competition. Appellations of Origin and their
International Registration
2) Madrid Agreement 1891 for The Repression Lisbon Agreement 1958 was regulating the
of False or Misleading Indications of Source definition of the term "geographic name of country,
Goods region, or locality, which serves to designate a
In the provisions of the Madrid Agreement product originating there, or which is essentially due
1891 only focused on limited legal protection and to the geographical environment, including natural
accommodated a number of specific provisions that and human factors". This agreement obliges its
regulate a number of repressive actions against member countries to protect the mention of
signs of misuse or misuse of sources. In the authenticity that has been registered in the form of
provisions of article 1 states that: "prohibited the seizure or imitation of another member country
use of false and deceptive indications of sources registered with WIPO. The main objective of the
and mandated seizures of goods bearing such Lisbon Agreement was 1958 to accommodate the
indications". The context of a deceptive needs of international legal protection instruments
understanding occurs when certain types of and facilitation facilities for GIs such as the
geographical indications are in two countries. Appellation of Origin in several countries outside
However, only one country uses that name as a the country of origin of the geographical indication,
source of goods...if another country pioneers the where the protection was realized through a single
use of product names that are geographic registration system at the WIPO International
indications in order to obtain economic benefits for Bureau.
the reputation created by the first country, then the
action is categorized as misleading in the Madrid 4) Trade Related Aspect of Intellectual Property
Agreement. Rights
The Provisions inside the Madrid Agreement
GI regulation in TRIPS is described in Article
of 1891 to provide additional levels for member
22 number 1 which states that: "A product is an
states and countries that should not be excluded for
indication that identifies an item originating from a
indications of origin for other goods. The Safety
member area, or region or locality in that area,

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where quality, reputation or other characteristics are example, local soil or fungi can contribute to the
basically caused by its geographical origin. "The taste, texture or color of special foods. The
use of designation for geographical indication relationship between products and regions must tell
products. can refer to a symbol or point to a place, consumers about some important characteristics of
without the need to use additional local names that the product which are the ingredients in the
are popular in the local area. That is enough to decision to buy goods. On the other hand, we must
show specific identification of a geographical understand that the definition and protection of
indication product. existing Geographical Indications based on
The definition of several crucial words in Traditional Knowledge or food is made into the
article 22 is the word phrase in the dispute or has same interpretation. debated or to expand or
not been the subject of interpretation in the context expand the TRIPS scheme. Today the recognition
of the WTO. Indications, territories, represent the and protection of food are very identical or parallel
quality, reputation, characteristics and geographical to TRIPS (post- DOHA) which adds protection to
indications can be interpreted in a variety of ways wine and alcoholic beverages. Even though the
by WTO members. For example, there are TRIPS agreement distinguishes trademark and
differences of opinion about whether the reference geographical indications as different Intellectual
to "territory" means that "Kopi Kintamani", for Property forms, GI arrangements are submitted to
example (Hananto, Geographical Indication as a each of the countries concerned, whether the
Tool to Protect Indonesian Herritage: Lesson From arrangements are combined together with brand
Bali Kintamani Arabic Coffee Case. , 2014) , can arrangements and or are regulated separately (sui
receive GI Protection. According to those who generis).
oppose the idea, GI refers almost exclusively to Characteristics of geographical indications
products with local, not national attributes. that are different from other forms of IPR, in TRIPS
Obviously, in accordance with the definition there are a number of characteristics of
in article 22.1, indications that do not connote Geographical Indications, among others: First,
quality, reputation or characteristics are not GI geographical naming is not absolute, because
TRIPS (Hananto, Geographical Indication as a Tool naming can use non-geographical names. must
to Protect Indonesian Herritage: Lesson From Bali refer to the area administratively but only based on
Kintamani Arabic Coffee Case, 2014). Correlation the factual state of the region. Third, GI ownership
of the relationship between quality, reputation, or rights are not individual but communal. Fourth, the
product characteristics and the area where the completeness of the fulfillment of the quality,
product is produced is an important factor. For characteristics and reputation of goods is only

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categorized as an alternative, an item can be regulations of the Republic of Indonesia


qualified as a GI sufficiently fulfilling one of these Government Regulation Number 51 of 2007
aspects. concerning Geographical Indications.
The context of the GI definition in Article 1
2. The Implications for Protection of Number 6 of Act Number 20 of 2016 is a sign
Geographical Indications on Traditional indicating the area of origin of an item and / or
Knowledge Based Products product which due to geographical environment
The legal substance in the field of factors including natural factors, human factors or a
Geographical Indication is very important in combination of these two factors gives reputation,
determining the legal protection of products quality, and certain characteristics of the goods and
protected by such Geographical Indications. The / or products produced. GI objects should be limited
importance of legal substance was formulated by to natural products because of the uniqueness,
Bernard L. Tanya, Yoan N. Simanjutak and Markus privilege, or superiority of the product compared to
Y. Hage is a rule of the game that places law as the other similar products born from the earth (geo)
main element in system integration. This was also where the product originated. Therefore, the
supported by Steeman, who confirmed that what regulation of IG must reflect the natural results of a
formally constitutes a society is the general particular region and the special quality of the
acceptance of normative rules of the game. It is this product concerned.
normative pattern that must be seen as the most In this legal concept, arrangements for the
core element of an integrated structure. In this protection of geographical indications in Indonesia
Bredemeier framework, the law is used to resolve can only be given to goods (good), not including
conflicts that arise in the community. Legal services. To obtain geographical indication
protection of Geographical Indications in its relation protection, an item must meet the main
is based on rules that apply internationally and are requirements, consist of:
adapted nationally to each country that regulates a) There are applicants for registration of
geographical Indications. Based on juridical geographical indication protection (Article 53
paragraph (2) of Law No. 20 of 2016);
normative, Indonesia can be said to adhere to a
b) Goods for obtaining geographical indication
geographical indication protection system that is protection must be registered with the
based on the Brand-based Trademark Law. Directorate General of Intellectual Property
Rights of the Ministry of Law and Human Rights
Therefore, the geographical indication arrangement
(Article 53 paragraph (1) of Law No. 20 of 2016)
in Indonesia is regulated The Law Number 20 of c) Goods must fulfill 3 (three) main elements,
2016 concerning Trademarks and implementing namely having signs, geographical
environmental factors and quality of goods

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(Article 53 paragraph (3) Law No. 20 of 2016) paragraph 3 Governance Ordinance No 51 of 2007
d) The applicant must make a code of practices for concerning Geographical Indication, which states
the goods to be requested (Article 5 paragraph
that geographical indications are protected after
3 Governance Ordinance No. 51 of 2007)
being registered on the basis of an application
The relation with products from Kintamani's submitted by an Institution representing the
traditional knowledge and traditional culture in order community in the area producing goods concerned,
to obtain geographical indication protection, must consisting of: natural resources, handicrafts; or
fulfill the main requirements above, along with the industrial products. Limitation of the determination
main elements of legal protection of geographical of the institution representing the community in the
indications that must be fulfilled by a product from area that produces the beaver is the institution that
the wealth of traditional communities include: is authorized to register geographical indications
and the institution is a government institution or

a. Holders of Geographical Indication Rights other official institution such as cooperatives,

The central role in registering Geographical associations and others.

Indications is the applicant's party. Indications can According to the explanation Governance

submit applications for registration to the Ordinance 51 of 2007, the definition by institutions

Directorate General of Intellectual Property Rights includes but is not limited to cooperatives,

of the Ministry of Law and Human Rights by the associations or foundations whose members are

institutions represented by producers, namely local producers. Regarding the institution given

indigenous communities incorporated in the Society authority as referred to in Article 53 paragraph 3

for the Protection of Geographical Indications. The letter (b) of Law No. 20 of 2016 and Article 5

Society for the Protection of Geographical paragraph 3b are government institutions in the

Indications qualifies as the applicant, because area in charge of goods submitted for applications,

having a direct interest in the protection of such as regional governments both at the provincial

geographical indications is the producer. The idea and district / city levels. Based on the above

of the protection of geographical indications that provisions implicitly there are 3 (three) parties who

emerged from producers, which in the future is can submit applications for geographical indication

expected to have an impact on rural community protection, namely government, institutions

development (rural development),especially in this representing producers and consumer groups. If

case is the indigenous community or Subak Abian. viewed from the purpose of geographical indication

Article 53 paragraph 3 of Law Number 20 protection, regarding the subject matter of the

Year 2016 concerning Trademark and Article 5 applicant for registration of geographical indications

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it has its own consequences for the continuity of Taking into account this issue, it is necessary to
utilization of geographical indications, namely as have a set of regional government policies that are
follows: able to synergize well with GI regulations at the
national level.
1) The Government
The central and regional governments act as 2) Institutions whose representing producers
applicants in the registration of geographical The Association of GI producers as the party
indications that are more likely to be conservation submitting the application for registration of
efforts or protection of cultural heritage contained in geographical indication protection, is directly related
geographical indications. As is known, reputation, to the protection of geographical indications. The
quality and characteristics of goods that are producer is the party that is the most
protected in geographical indications are formed disadvantaged, if there is a partnership with a
from local cultural heritage that has been carried reputation without the right to produce goods. In
out continuously, such as traditional knowledge addition to producers, losses also have a broad
which has an important role in shaping the impact on the parties involved in the supply chain
reputation of geographical indication goods as such as raw material suppliers, traders, whole
national identity. The advantage of the government sellers, retailers, etc., so that losses will have a
as an applicant in the registration of geographical broad impact on the socio-economic conditions of
indications and the owner of geographical indication the community. Therefore, the main focus of the
rights, namely the government is the subject of protection of geographical indications lies with the
applicants who are not vulnerable to dissolution, producer, so that the property rights of the
when compared to institutions representing geographical indications held by the institution
producers and groups of consumers who are representing the producer, including those involved
vulnerable to dissolution. in the production chain, will be more beneficial for
The broad influence of GIs on the protection the sustainability of their business.
of traditional knowledge is a special characteristic of . This causes the protection of geographical
local local communities, indirectly influencing indications to have no impact on the socio-
regional economic development carried out through economic conditions of the community where the
partnerships between the relevant local geographical indication is located. The form of legal
government, business actors and local communities protection for the geographical indication product
to realize community welfare through opening will not work properly, if there is an act of clamping
employment and increasing income native area. down on the geographical indication product, the

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owner is inactive, so that he will not be able to labeled with geographical indications. So the
effectively supervisor sue the perpetrator of the difference between producers and consumers in
reputation without that right geographical indication protection, according to
Miranda Risang Ayu lies in the form of protection,
3) The Consumer for producers is active protection and consumers
The benefits of GI play a very important role are passive protection (Ayu, 2006). The following
as a marketing tool in strengthening the are the advantages and disadvantages for each
geographical product position in the market and subject applying for Geographical Indication.
driving new market expansion in order to capture
consumers of these products. A high level of b. GI’s Signature
consumer confidence indirectly makes consumers Other items which are derivatives of the
willing to pay high prices because of the satisfaction product do not include items requested for
factor for product quality and the unique traditions protection. For example, is the product registration
contained in it. The group of consumers who submit for the geographical indication of Kintamani coffee.
applications for registration of geographical The name of the geographical indication requested
indication protection, if associated with the purpose for protection is "Kintamani Coffee Bali", is coffee
of geographical indication protection, actually beans and their products are produced from the
consumers have a direct connection because with Bangli Regency and Kintamani Districts. The use of
the protection of geographical indications, the name GI may only be used against Kintamani
consumers have been protected from confusion Coffee which means it is planted and produced in
and misdirection of fake geographical indication the Kintamani region as required in the
products. Actually, the authority of the consumer to requirements book. While the proposed protection
apply for registration of geographical indications is is the name "Bali Kintamani Coffee", so that the
not appropriate because consumers do not have an words "Kintamani", "Bali" or "Coffee" are not
interest in producing and marketing products, but considered as a form of illegal abuse or imitation
consumers only have the role of consuming the and can be used by producers instead of Bali
product, in the hope that the products consumed are Kintamani Coffee. Besides that, the Geographical
in accordance with the quality they expect. Indications of Bali Kintamani Coffee also use logos
Consumers have no interest in switching to that contain images and writings, namely images of
the producer, but only expect a guarantee that the Gunung Batur, Temple of Bali, pictures of coffee
products they buy are in accordance with the beans and writing of Kintamani Coffee Bali.
characteristics, quality and reputation of a product According to the provisions of Article 1 point

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6 of the Law. No.20 of 2016 concerning Trademark So that Geographical Indications are seen as
and GI context of geographical indication as playing an important economic role, namely giving a
protected legal object is considered as a sign that sign for consumers to get the expected goods.
shows the origin of the product concerned based on
natural, human or alert factors between the two 3. The Ideal Legal Protection of GI inIndonesia
which indirectly provide quality, technique and a. Example Cases on Another Country
reputation on products produced in the area certain. 1) Jamaica Blue Mountain Coffee
The variety of goods that can be qualified as a Jamaican choose to use GI’s and
product of a Geographical indication can be in the certifications marks to protect Jamaican Blue
form of natural resources, industrial products and Mountain Coffee instead of the trademark route
handicrafts that reflect the specific characteristics of Ethiopea followed. This was done beacuse a GI
the area of origin. While protecting the interests of provides a spesific link between the coffee grown
the region producing the typical product. In addition, and the Blue Mountain of Jamaica (Walker, 2009).
protection of Geographical Indications is also In 1948 the coffee industry board of Jamaica was
beneficial for consumers because it guarantees formed to oversee the production of coffee within
product quality (Yessiningrum, 2015). Market failure industry. The Goal of this board are to develop the
in building the image of a product in a Geographical coffee industry, promote the welfare of Industry
Indication product is caused by asymmetrical workers and make recommendations to the
information about the uncertainty of the quality of government.
the product being transported, so a sign is needed In 1948, the Government of Jamaica formed
to overcome the ambiguity of the quality of goods the Coffee Industry Council which was tasked with
as collateral), as well as the brand reputation, etc. supervising the coffee plant production business,
Information obscurity in the promotion of the Coffee Industry Council was assigned to be
geographical indication products between sellers actively involved in distributing coffee plants from
and buyers has the potential to give a bad predicate the start of the nursery, registration and supervision
for geographical indication goods as a result of the of agricultural lands, empowering farmers in
uncertainty of the quality of the products being processing coffee plants as well as licensing
traded. Geographical indications on a product of arrangements and merchants. The government also
traditional knowledge, for example, kintamani Bali carried out physical supervision of coffee
arabica coffee is a sign (indication) that connects agricultural products to be sold overseas through
goods of a certain quality, characteristics and coffee residue testing, coffee quality test quality
reputation based on regions of geographical origin. certification for coffee packaging management. The

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coffee business development program is funded by overcome by rising prices provided through licenses
the Government through income from the tax or trademarks.
sector. Currently there are 7600 coffee farmers with
92% of them working on five acres of land or less 2) The Starbucks Case inEthiopia
(Walker, 2009). A one pund bag of roasted Coffee is a leading commodity in Ethiopia. it
jamaican Blue Mountain is selling arround for about produces about 5% of world production and more
$50 per pound (Tomothy, 2007). than 30% of Sub- Saharan Africa. More than one
Under the Geographical Protection Act of the million small-scale producers generate 9% of output
Jamaica Blue Mountain Coffee product, it was and more than 10 million Ethiopians are part of
recognized as one of the geographical indication direct or indirect coffee production (Basti, &
assets in 2004. At present, Jamaica Blue Mountain Matteucci, 2007) . Ethiopia began registration of
Coffee Products are registered (marks and international trademark registration in 2004. Coffee
trademarks) in 61 countries in the world. The trademarks were submitted for registration between
license to use the geographical indications for these Yirgacheffe, Sidamo and Harrar. This coffee edition
products is increasingly difficult to obtain throughout trademark has been announced in 28 countries
the world, due to the high registration and coercion around the world. The reason for the Ethiopian
costs. This sign is one example of best practice Government was to create local coffee selling value
from a country in developing important commodities by differentiating prices from the prices determined
into a product that is successful in the market. by the highly volatile New York trade exchange.
The protection and development model of GI This step is expected to be able to bring economic
products in Jamaica received contrasting responses benefits to farmers and local distributors.
from Ethiopia. Ethiopia argues that the conditions The strategy was implemented in the form of
experienced by its country allow for the application a single fee royalty-free license. But the purpose of
of GI protection methods. The quantity of farmers this policy has not yet materialized even though
and the potential of products in Ethiopia is far more high retail prices on branded coffee already exist.
manageable. Lower profits for farmers will result Coffee farmers receive as low as 2% for export
from increased administrative costs. Although it has prices which is barely enough to cover costs, and
the potential to raise costs, it should be noted that as a result some coffee farmers withdraw their
the area of land used by producers in Jamaica is crops to sell narcotics for greater profits (Basti, &
smaller. The implementation of GI protection Matteucci, 2007) . In 2007, it was reported that
systems in Jamaica on the one hand will spend Ethiopian specialty coffee such as the Sidamo
more time, but the increase in costs can be brand was valued at around $ 26 dollars per pound

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(162 oz) at Starbucks because of their reputation, on the actions of starbuck who misused the
while Ethiopian coffee farmers received around $ Ethiopian trademark. The impact was that
1.35 per pound for seeds (Garamfalvi, 2007). Starbucks was the topic of discussion on worldwide
Currently Ethiopia Sidamo Coffee sells for $ 15 per news coverage of the trademark infringement issue
oz on the Starbuck website.Forcomparison,$17.34 of the Ethiopia’ GI. Eventually due to the huge wave
will buy three packs of 8oz Brand Coffee folgers of pressure from the international community
jars. Starbucks signed a licensing agreement with
The EIPO (Ethiopian Intellectual Property Ethiopia. Ethiopia has won IP rights over its special
Right) released a list of trademarks and initiated the Geographical indication in 2007 (Garamfalvi, 2007).
initial steps of applying for licenses for the use of Imposition sanction for stopping production of
the Ethiopian coffee trademark in 2004. The starbucks have the potential to cause investment
Ethiopian government initiative received financial and profit losses. As of consequences Ethiopia
support from the UK Department of International does not ask for royalties on the license and only
Development. So it was noted that more than 60 charges a fixed fee to Starbucks.
foreign companies have signed licensing
agreements with Ethiopia. The following year, the b. The Ideal IG’s as Protections Tool of
Ethiopia Government submitted a request for Traditional Knowledge
registration of the Yirgacheffe and Harar Coffe The model of GI regulation at the national
trademark to the United States Patent and level that is applied to each country consists of two
Trademark Office (USPTO). But at the same time, types, namely:
Starbucks has applied for a trademark registration First, the GI regulation model that integrates
in the name of "ShirkinaSun-Dried Sidamo". a regulation with a trademark. Countries that
Starbucks also insisted on refusing to withdraw its regulate GIs with Trademarks into the same law,
registration. Responding to this, the Ethiopian Ways of legal protection against GIs are carried out
Government appealed to the United States Patent by collective or certification licenses. The Country
and Trademark Office (USPTO) for alleged that apply trademark system in protecting GI just
violations of the use of trademarks in the common use the resources which already have been using
law right, eventually starbuck revoked his for trademark system for application, registration,
application but starbuck still insisted on using the opposition, adjudication, cancellation and
brand want to be registered by the Ethiopian enforcement. Then the system accommodates GI
Government that are not just place names, but also sign, like
Oxfam America conducted a public campaign words, slogans, designs, dimensional marks, colors

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or even sounds and scents (Geographical the Act. No.20 of 2016 is not suitable to be applied
Indication and TRIPS : 10 years Later, ,2007). in providing guarantees against traditional
Second, GI regulation through the Sui knowledge from potential misuse of foreign parties.
Generis system which indirectly results in logical Other IPR models are very suitable and effective in
consequences for GI protection by special methods safeguarding their economic rights, but as we know
and mechanisms that are separate from the GIs have their own characteristics that are holistic
arrangements for protection of other types of IPR. (including spiritual aspects and reflection of the
Countries that implement the Sui Generis system identity and integrity of the community).
that provides GI registration services, the producers This article view, the Indonesian Government
have no difficulty in protecting their GI products. should be able to consider the GI regulation options
This system has been widely used by many in a generic manner. The values of collectivity,
countries to protect GI wealth for centuries. pluralism and communalism that exist in Indonesian
The Regulation of protection toward GI is society are very not in accordance with the
applying in Indonesia, The Law. No.20 of 2016 individualistic concept in the current reguals. So
concerning Trademarks and GIs adheres to a that the application of an integrated GI legal system
regulatory system integrated with trademarks. can be a problem in its implementation.
Integration of regulations between brands and GIs
on the one hand has not had a positive impact on D. CONCLUSION
the provision of GI protection. The legal protection
GI has its own differences with other forms of
provided is only temporary does not provide long-
IPR in a system of wealth protection against
term protection. It would be better to arrange GI
traditional knowledge. The communalistic GI
protection to be accommodated into a special
philosophy that lives in the local communities
regulation that is specific (sui generis). The reason
around the IG is considered capable of
the authors recommend that the regulation of GIs
guaranteeing the protection of economic rights
on traditional knowledge includes: (1) GI is a
(exclusive rights) for producers of traditional
special form of IPR that serves as a tool to give
knowledge products that describe the identity of the
protection to traditional knowledge assets which are
local community. Indirectly it can be said to be able
important assets in the economic development of a
to protect cultural heritage and traditional
country. Sui generis arrangements can potentially
knowledge that is owned by the community.
produce an effective impact on the protection of
The urgency of the separation of GI (Sui
traditional knowledge up to the realm of its
Generis) arrangements in national law. This is
postulates; (2) Legal Protection of GIs stipulated in
because the characteristics of protection provided

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in Law No. 20 of 2016 have differences with Challenge and Opportunities, Vol.9, (No.39),
traditional knowledge, so that they have not fully p.265
guaranteed comprehensive protection. In addition, Hananto, Pulung W H. (2014) . Geographical
the establishment of strong technical regulations Indication as a Tool to Protect Indonesian
and mechanisms is also needed to be able to work Herritage: Lesson From Bali Kintamani
together in safeguarding the interests of the rights Arabic Coffee Case. Journal Of Intellectual
of the people who produce GI products. Property Law And Practice. National
University of Malaysia ; p.4.
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Doktor Ilmu Hukum Universitas Diponegoro.

INTERNET
Garamfalvi, A.(2007).Ethiopian Coffee Trademark
Dispute with the Starbucks Runs Hot and
Cold. Retrieved from https://www.law.com/

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